Minor International Public Company Limited (MINT) today (July 21, 2021) announced that the company has completed the sale of two hotel properties in Portugal, Tivoli Marina Vilamoura and Tivoli Carvoeiro, to Azora European Hotel & Lodging, FCR (AEHL) a fund managed by Azora Gestión, S.G.I.I.C. (Azora) the Madrid based European real estate investment manager.
Following the completion of the transaction, the hotels will continue to be operated under the Tivoli brandby MINT through NH Hotel Group (NHH) under hotel management agreements, for an initial term of 20 years and with options to extend for a total term of up to 30 years. The aggregate selling price is EUR 148 million and a net gain on sale of assets of EUR 26million.
The sale-and-manage-back transaction has been executed within the expected timeline and at a favorable valuation despite the challenging environment. The transaction allows MINT to deleverage and reserve some cash, to further strengthen its balance sheet and liquidity position. Moreover, MINT continues to own the iconic Tivoli brand, and remains one of the strongest hotel operators in Portugal and Brazil. The two hotels will remain in MINT’s portfolio as managed hotels, and MINT will be able to participate in the upside of the hotels’ performance through management fee.
Mr. Dillip Rajakarier, CEO of MINT, commented: “The transaction reiterates the combined strength of MINT and NHH in the execution of another strategic asset rotation with a respected real estate institutional investor in Europe, following the sale and lease back of the NH Collection Barcelona Gran Hotel Calderónlast month. It reinforces yet again our ability to spot a quality asset,make investments to enhance the value, and subsequently realize such value. We are pleased to be able to complete another one of our commitments to our shareholders in strengthening our balance sheet with this milestone in such a challenging time. The transaction further enhances the overall return of the Tivoli portfolio, in addition to the earlier transaction completed in 2019. The transactions generated an overall annual unlevered IRR of high teensfor our Tivoli portfolio. Asset rotation continues to be a part of our long-term strategy, and we will continue to look for opportunities to execute this strategy going forward.”
Mr. Dillip Rajakarieralso added, “MINT is pleased to be in partnership with Azora as we both share the same vision in having a long-term investment approach and emphasis on value creation for stakeholders.”
Concha Osácar, one of Azora’s Founding Partners, commented: “We have a strong conviction that there will be a strong post-pandemic recovery in the European hotels and leisure sector, with significant pent up demand following long periods of lockdowns and restrictions, particularly in the sun and beach markets. As we emerge into a post COVID world we have built a strong pipeline of further investment opportunities and are progressing discussions with the owners and operators of some of Europe’s finest hotels, such as the two Tivoli Hotels we are acquiring today, with many of owners seeking to recapitalise and work with a landlord like Azora that understands the dynamics of the sector and can be a long-term partner. This acquisition represents a rare opportunity to acquire two first class, well operated hotels at an attractive price which we believe will allow us to create long term value for our clients. The Tivoli brand is synonymous with quality and we are pleased to have secured 20-year management contracts with MINT and NH Hotels, who we look forward to working with to maintain and further enhance these outstanding hotels.”